31 Mar, 2016 (8:43AM IST)
Mar 30, 2016, (11:13pm EDT )
After a volatile session in U.S. markets, where major indexes closed much lower than the day’s high levels, Asian markets have opened with negative numbers as Oil futures start falling down again.
Crude Oil futures have dropped below $38, which is a triggering danger bells for U.S. and European stock futures. Futures of major indexes from both these markets are rapidly turning highly negative following a similar drop in Oil futures.
Asian markets are trading mixed with some positive numbers, including Nikkei, but this big Asian index is also fast losing its gains and can turn negative anytime now. SGX Nifty is only slightly negative, waiting for Indian markets to open and provide a trend.
Expect global markets be remain under pressure if Crude Oil futures continue to fall. Only a recovery in Oil futures can support markets today. U.S. markets have already indicated that their upside is now capped so any new worry can trigger a trend reversal in those markets and global markets will follow.
If Crude futures do not recover and start trading above $38, then technically, there will be more downside to Oil and thus, to global stocks.
However, if any news causes a recovery in Oil then U.S. stock futures could also follow that pattern and support global markets.
Later in the session, European markets, especially DAX could lead the intraday trend in global markets.
Watch how your local markets are reacting to these global cues and trade with that trend.
Good luck, enjoy the session!